Prime Minister Narendra Modi ’s plan to develop India includes creating toilet access for all 1.2 billion people and opening a bank account for every adult who doesn’t already have one. India’s state-owned lenders are being called on to do both, threatening to erode profits and add expenditures at firms saddled with nonperforming loans. Modi has asked banks to open branches within 5 kilometers (3 miles) of all of India’s 664,000 villages in order to reach 75 million households that have no access to formal financial services. After he announced on Aug. 15 a mission to build toilets in public schools, the Finance Ministry sent a memo to state-owned lenders urging them to pay for construction, according to a senior banking executive who saw it and didn’t want to be identified as the communication wasn’t public.